Project Dawn that Do Kwon announced discreetly in September is minting up to 3 million Luna a month from the TFL Genesis Wallet, diluting Luna holders and stakers. This huge amount of Luna taken out monthly is dumped and spent in a non-transparent way for ‘improvements’, which should cost a factor of magnitude less.
3 million Luna is $130,000,000 at today’s rate - by any measure it’s an unreasonably huge amount of money being quietly taken out and effectively stolen from the ecosystem by those who control the TFL wallet.
Can we discuss the possibility of blocking Project Dawn as a community and having Do Kwon requiring Luna community approval before he can transfer Luna from the TFL genesis wallet?
Here is the link to the announcement:
It’s not being minted, it already exists in total supply and in their wallet. Smartstake shows it as locked, but Do said this is not accurate and not how it should be viewed.
It is a huge sum but a lot is employee obligations, and secondly to build and make terra great requires incentives and fast track building.
Its also not being market sold but burned, so it’s kinda absorbed by market demand for UST. What creates more UST demand- increased utility and protocols, what causes this - high quality building.
Build build build. I used to be a minimalist, but now expansion is key for ultimate stability and long term Luna gains.
I also agree, 3million luna is pretty crazy sum, can we, in the name of transparency see where the 3 million Luna is alocated PER month?
Do we have enough to know it should cost a factor of magnitude less? I don’t think we’ve been provided with enough information to make that conclusion. It certainly is a lot, but if the deliverables are massive, you might feel different about that comment.
It’s not being minted. The Luna is already in the TFL wallet. They’re just distributing it, or using their term, “unlocking” it.
How would you stop it? They control the wallet. It doesn’t require our approval.
I don’t believe this is accurate. You can track the funds through their wallets and see a portion of the Luna going to CEX. I’m not implying this is inappropriate…they didn’t say they would not sell the Luna on exchanges.
Perhaps our energy would be better spent asking TFL to provide more updates? Personally, I think if they’re making improvements worthy of such a significant monthly distribution, it would be great to start getting excited about what is to come, but instead it feels a lot of people are on edge because we don’t have much information about what it is used for. Routine, structured updates is something I could certainly get behind requesting. The size of their treasury is intimidating. So, the more transparency, the better in my opinion. I know their Medium article said that they would release details around each unlock, but if they have done that, I haven’t seen it. I’d love to understand it better.
Can you expand on “employee obligations”?